enterprise risk management

An article we published in mid-2017 gave an introduction to how credit rating agencies are factoring ERM into their ratings. For most organizations, the evaluation of ERM is simply folded into the overall review of the firm’s management and governance. Additional research and other resources (see here and here) shared with me since the original…

It’s hard to believe, but this month marks the 2-year anniversary of my consulting firm and blog. My team and I have worked diligently to provide risk professionals, executives, and other interested parties with helpful tips for understanding enterprise risk management and how to apply it and realize value for their organization. To celebrate our…

On occasion, I come across news articles that present a great opportunity to showcase how ERM can be a valuable tool in helping organizations adapt to change. Because let’s face it – any organization, be it for-profit or non-profit, must adapt to growing trends to ensure they remain relevant for the long haul. The best…

Extending on our theme from last week on the people side of ERM, I want to outline some things I think organizations should look for in an external ERM resource (a.k.a. “consultant”). Although I outline the skills and personal qualities of an effective ERM professional in a prior post, there are special considerations when looking…

The majority of articles on my blog focus on the process side of enterprise risk management. I’ve discussed at great length subjects like setting up an ERM program, risk identification, risk assessment, and more. However, the process and technical skills is only part of what goes into a successful, value-enhancing ERM program. If you’re like…

Resources – whether they are time, financial, human, or natural – are limited. You only have so many hours in the day or only so much money, which is why all of us prioritize our activities for the day or how much money to spend. The same process we subtly do each day is definitely…

As part of your daily life, you drive a car, walk down the street, ride in elevators, go swimming, have children. Correct? You live your life. Well, you are accepting risk in all of those things. In fact, having a home or renting an apartment also entails risk…fire, wind damage, snow or ice, tornado, earthquake,…

In both my experience and according to a white paper from PwC, a common ERM challenge is how an annual risk review becomes a check-the-box activity. It shouldn’t be this way… Regardless of the reasons, everyone from executives all the way down to entry-level managers and employees have enough “bureaucratic” burdens as it is. An…

In order to have a risk management effort that ultimately “creates, protects, and enhances shareholder value,” you must first have a successful risk identification process. I’ve said it many times, and have heard it repeated elsewhere, that risk identification serves as the foundation for the entire risk management process…without it, the entire process is just…

NC State and Protiviti recently released a report entitled, “Executive Perspectives on Top Risks 2018.” The report lists the top ten risks that account for the “key issues being discussed in the boardroom and c-suite” of those organizations surveyed. Topping the chart at risk #1: “rapid speed of disruptive innovation.” The report states: “This top…